Lithuania s New Airline airlituanica

Transcription

1 Lithuania s New Airline airlituanica

2 Table of Contents Part 1 Establishment of a new air carrier in Vilnius, Lithuania Part 2 Routes Part 3 Business Plan 2

3 Part 1 Establishment of a New Air Operator in Vilnius, Lithuania Initiated by the Vilnius City Municipality Purpose Establishment of a new air carrier in Vilnius, Lithuania Scope Creation of a classic model next-generation hybrid carrier airline with its home base at the Vilnius International Airport that is efficient and effective and that provides a good return and value for its shareholders Envisaged shareholder structure: 1/3 + 1 share Remaining shares (17%) More than 1/3 shares Financial investment Veto power over moving of base airport anywhere other than Vilnius Vilnius City Municipality subsidiary company Financial investment Lithuanian / EU airline nationality Continuity and no-deadlock Private investors Financial investment: Mezzanine shareholder loan possible (over 1/3 of share capital) Experience in air transport Strategic investors Projected Initial Capitalization: 2.5 million EUR Issue price: 1 share at 25,000 EUR Air carrier company Plus: 1% - Ticketing system company 1% - Each partner city 3

4 country_n Part 1 Establishment of new air operator in Vilnius, Lithuania ADVISORS Aviation Economics VILNIUS CITY MUNICIPALITY STRUCTURE Vilnius City Municipality Start Vilnius Air Lituanica Air operator company Air Vilnius Group Airport Services New Terminal in Vilnius 4

5 airlituanica business model Traditional airlines Low cost carriers airlituanica AF increased co-operation with Transavia SkyTeam open to admit LCCs Iberia Express operating shorthaul routes from Madrid LGW, a low cost alternative to LHR Germanwings cooperation No assigned seating Increased presence at major airports Business passenger focus Assigned seating trial GDS distribution Flexi fares GDS distribution In-flight Wi-Fi Long-haul Low cost plus National flag carrier status Seat assignment Multi-frequency Convenient schedule Main airports Multi-channel distribution High punctuality Good product Flexible fares Lounge access Fast track FFP 5

6 Operating Plan- Network Weekly Frequencies Route BRU LON MOS AMS PLQ KBP STO MUC BER LED HAM TBS IST destinations 9 of which have no direct services 4 routes with direct scheduled competition 2 (MOS,KBP) traditional competition 2 (LON,BRU) full service & LCC competition 6

7 Operating Plan 75,8% Load Factor Passengers and Load Factor 78,6% 77,2% 76,7% 77,2% airlituanica frequencies, capacity and passenger flows are projected on a route-byroute basis over a five year period beginning in April No. of Weekly Frequency Fleet Operations Passengers ('000) Load factors 76-79% Fleet consists of ERJ175 configured with 86 seats, building to 4 units Average aircraft utilisation is block hours per day Passengers expected to grow from 188k pax in 2013 to 564k pax by

8 Costs - Personnel Lean management structure Average of 52 per aircraft Outsourcing where possible Combination of international and local salaries PERSONNEL NUMBERS (Average annual FTE) Cockpit crew Cabin crew Engineers (Line) Call centre Management, sales, admin Total

9 Financial Plan - Results Operating Profit/Loss Projection Op Margin 5,3% 0,3% 5,7% -4,1% -17,7% Op Profit(Ltl m) Op margin 20% 15% 10% 5% 0% -5% -10% -15% -20% Operating results indicate a loss of -Ltl 11m in Year 1, continuing to Year 2 By Year 5 an operating profit of Ltl 12m is projected, equivalent to about 6% of revenues Profitability is achieved through a combination of increasing unit revenues (better load factors and higher fares) Note: 9 month operations in Year 1 Ltl Cents 30 Unit Cost 25 Unit 20 Revenue Unit Revenue vs Cost Non-fuel Unit Cost

10 ADLEX Antanas Guoga Marijampolės arvi Balsas.lt BALTIC OPTICAL DISC Brian Joffe GARSŲ PASAULIS Lietuvos rytas MG BALTIC INVESTMENT Modus Panevėžio keliai SBA Vičiūnai Group Vilniaus vystymo kompanija Ministry of Transportation Ministry of Foreign Affairs Vilnius International Airport

11 ECONOMIC BENEFITS OF AIRLINE Direct Air transportation impact Indirect Service sector Induced Direct and indirect expenses by workers Spin off Business, tourism TOTAL IMPACT: 11,700 jobs and 420 MLN Euros General Added Value One million passengers create 3,000 jobs (950 directly). With spin off 4,000 jobs. (Source: ACI Europe 2004) In 2008/2009, Lithuania lost: - 1,860 jobs (600/1,260 directly/indirectly) - 70 MLN Euros directly/indirectly (without taking into account spinoff) (Source: Advanced Logistics Group 2009 EuroPraxis Consulting)